Bank of Thailand eases housing loan rules

Bank of Thailand eases housing loan rules

The central bank has relaxed mortgage lending rules to help certain home buyers borrow more and make lower downpayments, a deputy governor said on Monday.

Under the changes, effective on Monday, the Bank of Thailand will allow buyers of first homes worth less than 10 million baht to borrow an extra 10% for furniture, Ronadol Numnonda told a briefing.

Buyers of second houses worth less than 10 million baht will be allowed to make a downpayment of 10% if the mortgage on the first home has been paid off for at least two years, versus three years required earlier, otherwise a 20% downpayment will still apply. 

Aside from changing the loan-to-value ratio, the central bank said it would cut interest rates, speed up tax rebates for SMEs and allow insurance firms to invest overseas to boost liquidity and stabilise the baht.

(More to follow)

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